January 8, 2020 Last updated February 27th, 2020 706 Reads share

How to Preserve Your Business Fleet Car’s Value

Image Credit: DepositPhotos

Your vehicle fleet is an extremely valuable asset to your company – it’s a major investment that is definitely worth it. Unfortunately, vehicle’s depreciate in value as soon as they make their first journey on the road. Therefore, maintain the value of your company fleet can make a huge difference on your business’ bottom line.

Looking after your fleet can not only help save you money, but it can also help with productivity and operations as well as gain a good reputation with both prospect and current customers. The good news is that there are a few steps you can take to ensure that you can preserve your fleet cars’ value during its lifetime and future proof your fleet.

To Buy

Typically, when businesses look at their fleet of vehicles there’s an initial decision of whether to purchase the vehicle’s outright or to lease them and free up some cash flow. When you’re looking at a vehicle depreciating in value as soon as it leaves the shop doors, leasing can look like a more attractive option.

It also provides the option of buying the vehicle at a later date once the lease term ends at a much lower price than if you were to buy it outright. It also can lower costs of maintenance, tax and allows for swap outs of newer vehicles at the end of the agreed term.

Or Not to Buy

Despite this, the total cost of ownership can be lower if you choose to buy. Owned vehicles also tend to remain on the road longer than the average leased vehicle. When the vehicle is yours as a business, it can also give you the ability to modify any technology and equipment to meet your business requirements.

Looking at the longer-term strategy when it comes to leasing or purchasing is always based on your business needs. Therefore, it’s important to review this, before adopting a new vehicle fleet.

Regularly Maintain Your Car Fleet

Regular maintenance of your fleet can help improve reliability, reduce risk of breakdown or accidents, decreases time off the road, enhances safety and what’s more, increases the resale value of the car.

Telematics can be a great help in tracking vehicle maintenance as well as monitoring driver behaviour to ensure that your vehicles are being utilised effectively and preventing any issues before they become major repairs. It can also help to cut fuel costs as well as ensure that your vehicle remains on the road for longer.

They can be used to track GPS routes to lower mileage, monitor performance and also monitor health and safety of your employees too.

Stay Safe

Alongside a fleet maintenance plan, your business may want to look at implementing a safety plan with regards to your fleet. For example, putting video cameras or dash cams on screens or within vehicles can help to monitor driving as well as improve driver behaviour. It can also be used to help reduce business fleet insurance premiums.

Clear policies can be put in place for your employees which can be rolled out with training and education across the business to reduce the risk of accident, improve behaviour which in turn can help to prevent repairs and accidents. When drivers are using vehicles safely, it can have a direct impact on the value of your fleet and help you to put best practices and policies in place that can then become second nature to the business.

Park Wisely

Finally, one of the easiest ways to improve the value of your fleet during its lifetime is to reduce the possibility of accidents and general wear and tear by ensuring there is a safe place to park. Parking away from any other vehicles can be a great way to reduce any potential impact caused by other drivers. In addition to this, indoor garages or places where vehicles cannot be impacted by weather can really help to improve the body of the vehicle and reduce any repairs required.

Preserving your fleet can be simple, but it’s a really important way to help your business save money and maintaining any value in your vehicles. With technology changing constantly, it may be wiser to invest in telematics and/or lease vehicles to ensure that you get the newest vehicles that can reduce your environmental impact, decrease your costs whilst also giving minimal impact to your cash flow and bottom line.

 

van fleet -DepositPhotos

markmckenna

markmckenna

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